PNC Bank’s Christmas Price Index Increases 5.4%

PITTSBURGH, Pa. – National inflation levels may be on the decline, but when it comes to True Loves’ gifts, the price of decking the halls keeps rising. 

Now in its 41st year, PNC Bank’s annual Christmas Price Index rose 5.4% – doubling last year’s 2.7% increase and surpassing the Bureau of Labor Statistics Consumer Price Index’s year-over-year reading of 2.6% for October.

The PNC CPI measures the change in prices consumers could expect to pay for True Love’s gifts from the classic holiday carol “The Twelve Days of Christmas.” Data is compiled by PNC’s Investment Office using sources from across the country, including dance and theater companies, hatcheries, pet stores and others.

Overall, the 12 gifts that comprise the PNC CPI increased to a tree-topping $49,263 this year.

“Believe it or not, we’re still seeing the cause and effect of the pandemic-inflation hangover, even nearly five years later,” said Amanda Agati, chief investment officer of PNC’s Asset Management Group. “With years of steep price increases, we’d think inflation has nowhere to go, but we’d be wrong. This latest PNC CPI is an accurate reflection of what we’re seeing in the market.”

Purchasing all 364 gifts – the True Cost of Christmas; that is, buying the gifts with verses repeated – crossed the $200,000 threshold for the first time last year, and today it settles in at 3.6% higher at $209,272. 

Price increases for tech-savvy Santas were lower than those who shop in stores, but the total remains higher at $54,074. The convenience of shopping from home is still impacted by elevated shipping and packaging costs that have yet to ease since the pandemic.

There were no price increases this year for five of the gifts in the Index, including the Two Turtle Doves, Four Calling Birds, Five Gold Rings, Seven Swans-a-Swimming and Eight Maids-a-Milking.

Although the Partridge was unchanged, there was a 17.1% jump in price for the Pear Tree – a proxy for housing costs, which likewise continue to move higher despite average mortgage rates edging lower.

True Loves will benefit from little to no price increases for goods on this year’s list; however, rising wages for skilled labor, represented by the performers, will make a bigger dent in their budget this year. Strong labor markets have helped spread cheer to many workers who have seen wage growth rise, consistent with trends in the Bureau of Labor Statistics CPI. The cost of Nine Ladies Dancing and 10 Lords-a-Leaping jumped to new heights; 11 Pipers Piping trumpeted higher; and the 12 Drummers Drumming beat a stronger sum. In aggregate, prices for performers increased 7.9% this year, substantially higher than last year’s 3.3%.

The cost of all 12 gifts is reported on PNC’s interactive website. 

“Buying the same gifts year after year may seem boring, but keeping track of changes in your spending enables you to make brilliant moves with your money, which is what I think the PNC CPI sets out to do,” Agati said.

Published by The Business Journal, Youngstown, Ohio.